Environmental Report 2003 ENERGY IN TUNE WITH YOU

Transcription

1 Environmental Report 2003 ENERGY IN TUNE WITH YOU

2

3 Reduction of specific emissions SO 2-49%

4 Reduction of specific emissions NO X -19%

5 Reduction of specific emissions Particulates -44%

6

7 Environmental Report 2003

8 The 2003 Environmental Report reviews the activities that Enel s Divisions and Companies in their configuration as of 31 Dec carried out in Italy and abroad (Spain, Bulgaria, North and South America). The data of each Division or Company refer to the entire year and include acquisitions, if any, made in the course of the year. The reported data are equal to 100%, independently of Enel s holdings in the Companies. By way of example: > Interpower, sold on 29 January 2003, is excluded; > the data of Deval, of which Enel has a 51% stake, are equal to 100%. The Report, which has the typical format of annual reports, consists of the following sections: > Enel s organizational structure; > environmental policy; > environmental management organization; > environmental governance; > some facts about research, environment and quality; > environmental features and highlights of Enel s business activities (with data sheets summarizing their environmental performance); > eco-balance, consolidating the results of Enel s Companies and Divisions and including indicators and graphic presentations. A special section is dedicated to initiatives and results in the area of occupational health & safety. The verifier s statement closes the publication. The data on international operations are limited, for this first year, to those appearing in the International chapter, Business Activities section. The data on number and characteristics of installations as well as the organization of business activities over the country, etc. are reported as of 31 December. For additional information on the general contents of the Environmental Report, contact: Marcello Coggiatti Enel / Public and Regulatory Affairs Environmental Policies Viale Regina Margherita, Roma Tel. no marcello.coggiatti@enel.it

9 CEO s Message Enel SpA Environmental policy Environmental management organization Environmental governance Some facts about research, environment and quality Business Activities Generation and Energy Management Networks, Infrastructure and Sales International Telecommunications Terna Eco-Balance and Indicators Eco-Balance Indicators Occupational Health & Safety 72 Protection of workers health and improvement of workplace safety Certification Report 78 Verifier s statement

10 4>5 ENVIRONMENTAL REPORT 2003 CEO s Message The task of generating electricity in more efficient ways, minimizing emissions and the environmental impact, is an integral part of our mission. The publication of the Environmental Report is an opportunity to measure our performance and take stock of our activities and achievements during the year was the International Year of Research, a field where Enel had a particularly good performance, because we feel that innovation and research can help reconcile economic development with environmental sustainability and social accountability. Two of our projects the use of debris from marble processing for desulfurizers and the elimination of the typical odor of geothermal plants received the Innovation & Environment Award organized by Legambiente (environmental association) and the Bocconi and Politecnico di Milano universities. But during 2003, we also launched the Hydrogen Project as part of the Hydrogen Park Consortium of Venice, as well as the Archimedes Project, an initiative resulting from the cooperation between Enel and Enea (New Technologies, Energy and Environment Agency) for construction of a thermodynamic solar facility associated with the combined-cycle plant of Priolo Gargallo in Sicily. The facility will generate electricity from the high-temperature steam produced from solar heat. This year, the Environmental Report is presented for the first time together with the Annual Report and the Sustainability Report. This initiative stresses that the three Reports are not separate objects but an integrated set of documents reflecting an economic, environmental and social reality which shares the same mission. An integrated reading of these documents demonstrates that excellent financial performance can be attained in parallel with improvements in the environmental and social management of our activities. On the environmental front, Enel achieved all the targets that it had set. At the international level, we are among the companies with the best environmental performance. We continued to decrease the emissions of traditional pollutants from thermal power plants; with respect to 2002, sulfur dioxide (SO 2 ) dropped by 46%, nitrogen oxides (NO X ) were slashed by 12% and also particulates fell by 40%. The rationale behind these positive results lies in improvement and rebalancing of the fuel mix, as well as in enhanced efficiency of our thermal plants (from below 38% to over 39%). The only legislative derogations, for emissions into the atmosphere and for the temperature of the releases of thermal power plant cooling waters, were requested upon the heat wave of the Summer of 2003, but only to avert the risk of an electricity generation deficit.

11 We recorded positive results also in terms of greenhouse gases (CO 2 ): average specific emissions from thermal generation were equal to 670 g/kwh, i.e. about 7% less than in 2002 and more than 9% less than in Furthermore, we went on with our programs for optimizing waste and water management. Thanks to our efforts in the use of renewables, net generation from wind sources rose by 24 GWh with the entry into operation of new plants with a total capacity of 68 MW. Another important aspect is the mitigation of the impact of our medium- and low-voltage power lines on land use and landscape: over 68% of the medium- and low-voltage grid uses underground or insulated overhead cables. These results substantiate that the strategy of conversion of our plants to more efficient and less costly fuels thanks to advanced flue gas abatement technologies can drive down costs but also significantly curb emissions. Efficiency, positive financial performance, care for the environment and landscape where we work can and should go hand in hand. This is our commitment and we will keep it also in the coming years. The Chief Executive Officer Paolo Scaroni

12 6>7 ENVIRONMENTAL REPORT 2003 Enel SpA The organizational structure of Enel, which took shape in the course of 2002, is organized into Divisions (Generation and Energy Management, Networks, Infrastructure and Sales, International, Telecommunications, Services and Other activities) to more adequately reflect Enel s strategic change from a multi-utility model to an organization focused on electricity and gas. In the new organization, which includes Terna (owner of the near totality of the national transmission grid), Enel SpA has a more significant role of guidance and monitoring. Corporate Generation and Energy Management Division Networks, Infrastructure and Sales Divisions Electricity Gas International Operations Division Telecommunications Division Services and Other activities Division Transmission Networks

13 Environmental policy Enel has always showed environmental care in addressing aspects of electricity generation and distribution, efficient use of resources, abatement of emissions, operation of installations and their integration into the landscape. Environmental protection has thus become a corporate asset of strategic and societal relevance, which adds value to Enel s industrial policies. Good environmental performance over the years led Enel to reiterate its environmental policy and underlying principles also in 2003 and to propose the achievement of the related targets with renewed impetus. Principles >Protecting the environment and the health & safety of workers. > Safeguarding Enel s corporate value. > Raising environmental and product quality standards. Strategic targets > Use of processes and technologies which prevent and/or mitigate impacts on the environment and landscape. > Rational and efficient use of energy resources and raw materials. > Optimization of waste recovery. > Application of international environmental and safety management systems in the various activities. > Optimized integration of installations into the landscape. > Use of the best operating practices. > Communication of corporate environmental performance to the public at large and to institutions. > Environmental awareness, education & training of employees.

14 8>9 ENVIRONMENTAL REPORT 2003 Environmental management organization Environmental Policies Unit of Enel s Corporate Public and Regulatory Affairs has the mission of identifying Enel s strategic environmental targets, ensuring their consistency with the Divisions programs and initiatives. In particular, the Unit: > promotes, implements and coordinates programs and agreements with environmental institutions and agencies; > identifies indicators and monitors the progress of corporate initiatives in terms of environmental impacts; > conducts analyses on specific environmental issues having particular repercussions on Enel s system and arousing public interest; > establishes relations with environment-focused institutions and agencies on technical matters; >prepares Enel s Environmental Report. Furthermore, depending on the specific issues to be covered, each Business Division may have in-house environmental teams and/or specialists. Enel s total human resources that are full- or part-time dedicated to environmental matters amount to over 220 equivalent full-time units.

15 Environmental governance The new organizational structure strengthened Enel SpA s responsibilities, especially in terms of governance of cross-cutting processes, with a view to maximizing effectiveness and efficiency in the performance of business activities. Environmental governance helps raise the social credibility of Enel and is a measure of the competitiveness and value of its policies vis-à-vis shareholders, customers and communities. Enel s environmental governance is currently implemented via reporting, management, awareness, training & education instruments, which also serve the purpose of transferring it to regional units so as to ensure consistent actions and behaviors. Effective environmental governance also means careful management of financial resources. Although Enel has not yet a dedicated accounting system, its environmental expenses are recorded on a yearly basis in order to guide investments of an environmental nature. Moreover, the governance process is designed in such a way as to address the inevitable environmental criticalities, which occasionally evolve into lawsuits. Environmental reporting The reporting system has become a key instrument for constantly monitoring the interactions of Enel s industrial activities with the environment. The system was refined over the years, thanks to constant utilization and introduction of techniques and procedures that ensure data management reliability. Additionally, the formats for data collection were revised both for recording occupational health & safety items and for making the reporting system more flexible and more adaptable to Enel s new organizational configuration, as well as to evolving legislation. Data reporting has become engrained into Enel's environmental management system and its methodology ensures the best homogeneity of the collected data. Thanks to its high manageability, the reporting system has become an instrument for periodical monitoring the environmental performance of many of Enel s business activities vs. targets. Environmental management In 2003, once again, Enel was engaged in the application of environmental management systems in its electricity generating sites, in accordance with the international ISO standard and with the EMAS (Eco-Management and Audit Scheme) Regulation. In particular, Enel is committed to certifying all of its Italian power plants under ISO and to subsequently apply for EMAS registration of at least 90% of them. As of December 31, 2003, 51% of Enel s installed capacity (58 power plants) was certified under ISO 14001; 27% of such capacity also obtained the EMAS registration. The ISO certified sites which have already been EMAS-registered are the thermal power plants

16 10 > 11 ENVIRONMENTAL REPORT 2003 of Fusina, La Casella, Leri Cavour, Montalto di Castro, Porto Marghera, Sulcis and Torrevaldaliga Nord, the hydro power area of Vomano and the hydro operation units of Avisio and Cordevole. The thermal power plants of Porto Tolle, Priolo Gargallo, Brindisi Sud and La Spezia, the hydro business unit of Bologna, the hydro power plant of Entracque, the hydro power area of Taloro and the hydro operation unit of Nove are only ISO certified, but are already preparing for EMAS registration. EMAS in power plants With reference to overall capacity: 41,846 MW ISO in power plants With reference to overall capacity: 41,846 MW Registered 26.8% Registration under way 12.8% Planned registration 60.4% Certified 51.1% Certification under way 0.3% Planned certification 48.6% Furthermore, the Power Grid Business Unit of the Networks and Infrastructure Division is awaiting the ISO certification. Terna actively participated in the drafting of guidelines for environmental management of high-voltage power lines. The guidelines were issued by APAT (National Agency for Environmental Protection and Technical Services). In November 2003, the Telecommunications Division (Wind) obtained the three-year renewal of its ISO certification. Awareness, training & education Environmental awareness, training & education initiatives have become core elements of Enel s yearly education plan for improving the skills and know-how of human resources. In 2003, Enel developed 55 education modules for its environment-dedicated personnel, delivering a total of about 10,000 man-hours of courses. Also in 2003, Enel relied on communication activities for disseminating knowledge of its initiatives internally and externally. Brilliant communication results were achieved, among others, through two thematic sections of Enel s portal, the Environment Channel ( and the Nature Channel ( which have been active for almost three years and which are intended to build public awareness of the relations between industrial settlements, the environment, nature and landscape.

17 Web users highly appreciated the contents posted on the two channels. In 2003, the channels had an average of about 6,300 first-time visitors per month, corresponding to about 21,500 accesses per month, with average sessions of about 20 minutes each. To intensify its communication with the external world on specific themes of environmental protection and nature conservation, Enel activated an online forum ( and a dedicated mailbox (ambiente@enel.it). Moreover, in its Nature Channel, Enel posted a Travel Notes section, as well as a multi-media section with atlases of Italian birds, mammals and orchids. A new navigable version of Electricscapes and Visit the Power Plants is also available. Financial resources In 2003, sizeable financial resources were allocated to environmental protection: > 131 million euro of investments; > 637 million euro of current expenditure. The near totality of the above figures refer to electric activities. In line with the guiding principles of Enel's previous environmental reports, environmental expenditure is defined as the costs incurred for protection of the external environment and of the health of the general population. This expenditure excludes the costs incurred for activities that, albeit beneficial to the environment, are carried out mainly for industrial and economic purposes, for protection of workers and for the safety and security of power installations. Environmental investments by business activity Total: million euro Electricity generation and geothermal drilling 53.5% Electricity transmission 1.5% Electricity distribution 44.4% Telecommunications 0.6% Among the most significant environmental investments, it is worth mentioning those for fluidized-bed conversion of unit 2 of the Sulcis power plant; the unit is scheduled to go into service by the end of Improvements were also made to emission abatement systems in the Livorno and Genova power plants. In the first months of 2004, the first of the two Termini Imerese units became operational, thus completing the first step of the program ( ) of conversions of the power plants of La Casella, Priolo Gargallo, Porto Corsini and Pietrafitta to combined cycles. Although this investment is not based on environmental considerations, it increases the efficiency of thermal generation.

18 12 > 13 ENVIRONMENTAL REPORT 2003 In 2003, more vigorous initiatives were taken to eliminate the impact of prior geothermal activities on landscape, by implementing most of the projects included in the plan of environmental rehabilitation of geothermal areas. The most significant environmental investments were made in the following areas: > power grid: in the range of 60 million euro; > thermal power plants: in the range of 59 million euro; > geothermal plants: in the range of 8 million euro. The current environmental expenditure for 2003 includes: > costs for the operation of equipment and systems for environmental protection, for waste disposal and for the personnel involved of Enel and contractors: about 132 million euro; > eco-taxes, the most significant of which were the eco-tax on SO 2 and NO X emissions, the carbon tax on fossil fuels and the levy on geothermal power plants: about 58 million euro. It is worth stressing: > the captive use for environmental compliance of low-sulfur fuels, especially natural gas in steam generators and medium-, low- very low-sulfur fuel oil, in place of the originally planned fuel; > the partial or total unavailability of power installations for environmental requirements, such as reduction of the power of some plants in order to satisfy the temperature limits of cooling water releases. In 2003, the corresponding costs were in the range of 450 million euro. Items of current environmental expenditure Total: million euro Current environmental expenditure per kwh generated By type of generation (thousandths of euro/kwh net) Operating expenses 20.7% Environmental taxes 9.1% Research 0.1% Extra costs of fuels 70.1% Thermal generation (including extra costs of fuels) Thermal generation (excluding extra costs of fuels) Hydro generation Geothermal generation Wind and photovoltaic generation

19 Environmental criticalities The use of the most rigorous and advanced organizational measures cannot avoid the occurrence of environmental criticalities, which originate from various factors, including the excessive emphasis that the media place on some issues, thus inducing a wrong perception of reality and improper expectations among communities. Environmental criticality is the rejection of or opposition to installations (and/or to the impact deriving from their operation). Such rejection or opposition is expressed obviously for environmental reasons by a third party feeling disturbed, damaged or threatened by present or future installations. Environmental opposition translates into initiatives which include legal notices (including written protests) or administrative measures and which may involve significant costs owing to failed authorizations, suspension of works, modifications of installations, etc. 73% of environmental criticalities involve the power distribution grid, 15% telecommunications, 11% electricity generation and geothermal drilling and the remaining 1% other activities. The most frequent criticalities concern electric & magnetic fields (over 56%), biodiversity and landscape, noise and vibrations. The criticalities concerning air and climate, waste, soil, groundwater and surface water only relate to electricity generation and geothermal drilling. Other criticalities (those which do not fall under the above-mentioned headings) mainly involve the power distribution grid. 76% of the criticalities arose from complaints, while the remaining part was due to administrative measures and legal notices. Environmental criticalities by business activity Total: 219 Environmental criticalities by environmental protection activity Total: 219 Electricity generation and geothermal drilling 11.4% Electricity distribution 73.1% Telecommunications 15.0% Other installations 0.5% Air and climate 1.4% Waste 0.5% Soil, groundwater and surface waters 2.3% Noise and vibrations 7.8% Biodiversity and landscape 16.0% Radiation (including electromagnetic fields) 56.5% Other 15.5%

20 14 > 15 ENVIRONMENTAL REPORT 2003 Environmental litigation As of December 31, 2003, Enel had 555 pending lawsuits, of which 52% administrative, 33% civil and 15% criminal. The distribution of lawsuits by business activity and by environmental protection activity is practically the same as the one of environmental criticalities. It is worth mentioning that, in 2003, 66 new lawsuits were filed, whereas a higher number of lawsuits (91) were settled. In 80% of the cases, the judgment was in favor of Enel.

21 Some facts about research, environment and quality Electricity evolution: from fossil fuels to hydrogen Enel is very attentive to capturing the opportunities arising from hydrogen research. Numerous initiatives were taken in 2003 to apply well-established technologies and test emerging concepts for production of hydrogen and its use in transportation as well as in electricity and heat generation. The following are the most significant activities that the Generation and Energy Management Division carried out in this field. > Launch of an integrated project for developing and testing technologies of production of hydrogen from coal, as well as for developing an advanced hydrogen-fueled thermal cycle, also in view of Enel s participation in the Hydrogen Park Consortium of Venice (formalized at the beginning of 2004). The plants involved in the project are located near the coal-fired plant of Fusina. > Construction of an experimental station, consisting of a combined heat & power generation system based on Proton Exchange Membrane (PEM) fuel cells, for testing innovative concepts in distributed generation. In 2003, the system (5 MW capacity) operated for 1,000 hours under different load conditions, generating electricity and heat. > Completion of an international demonstration project for testing a hybrid-cycle facility integrating Solid Oxide Fuel Cells (SOFCs) with gas turbines. Partners in the project, coordinated by the German electricity company RWE, were the German gas company (Thyssen Gas) and Siemens Westinghouse, which provided the technology. The new frontier of renewable-energy plants: Archimedes Project In 2003, an important agreement between Enea (New Technologies, Energy and Environment Agency) and Enel opened the way to the testing of power plants associating combined cycles with solar concentration systems consisting of linear parabolic collectors. The new technology will be applied on the industrial scale at Enel s plant of Priolo Gargallo (Sicilia), recently converted to two combined-cycle gas-turbine units, each with a capacity of 380 MW. The plant site has about 60 hectares of flat vacant land, which will be used as solar field. The collectors will be aligned along the North-South axis and arrayed in parallel rows with a spacing of about 12 meters m-long and m long collectors will cover an area of about 40 hectares, providing a total active area of nearly 20 hectares. The about 20-MW solar facility, which will integrate the Priolo plant, is based on an innovative technology developed by Enea: its mirrors will absorb the available solar radiation to produce steam, which will be fed to the plant turbines; this steam, combined with the steam produced by the combined-cycle heat recovery steam generators, will increase the total generation of electricity, fuel consumption remaining equal. In particular, Enea s research innovated the solar absorption system, whose linear parabolic mirrors concentrate solar radiation and reflect it onto a receiving tube, specially designed to withstand

22 16 > 17 ENVIRONMENTAL REPORT 2003 operating temperatures (550 C). Inside the tube, there is a heat transfer fluid consisting of a mix of molten salts. The plant will generate more than 60 GWh of electricity per year, saving almost 13,000 tons of oil-equivalent and avoiding over 40,000 tons of CO 2 emissions into the atmosphere. The planned investment is equal to roughly 50 million euro. Energy Quality: the Environmental Product Declaration In 2003, Enel joined the Intend project, within the framework of the European LIFE Environment program. The project is targeted to apply the Environmental Product Declaration (EPD - highly developed in North-European countries, especially in Sweden) in Italy on an experimental basis. The EPD is a voluntary certification (under the ISO/TR standard) which provides information on the environmental performance of a product or service through the application of the Life Cycle Assessment (LCA) methodology. Similarly to an eco-label, the EPD informs consumers about the environmental impact of a product or service. This certification is not alternative but complementary to environmental management schemes or systems, such as EMAS or ISO Enel s interest in the EPD scheme arises from the need to offer more and more transparency to its customers in terms of the impact of the entire cycle of generation of electricity which, in this case, is regarded as a commodity. Thus, in 2003, as part of the Intend project, Enel started the process for obtaining the Environmental Product Declaration in respect of the electricity generated by two of its renewable-energy power plants: the wind plant of Sclàfani Bagni (8.5 MW) in the province of Palermo and one geothermal plant still to be identified. The certification is expected to be obtained by the end of Enel will thus be the first Italian company to engage in the EPD.

23

24

25 Business Activities

26 20 > 21 Business Activities ENVIRONMENTAL REPORT 2003 Generation and Energy Management The Generation and Energy Management Division is one of the six areas of Enel s new organization. The Division gathers all assets of electricity generation in Italy and, through Enel Trade, of electricity sales in the Italian market to customers with a yearly consumption of over 100 million kwh and to resellers. Always through Enel Trade, the Division sells natural gas to distributors and is active in trading on international markets. Fuel handling services are provided through Enel Logistica Combustibili. Electricity generation assets abroad (Spain, North America, Latin America, Bulgaria) were transferred to the recently established International Division. The Generation and Energy Management Business Units which are involved in electricity generation from conventional sources (fuel oil, natural gas, coal, orimulsion) and from renewables are: > Thermal Generation, which manages thermal power plants; > Renewables, which develops and operates renewable-energy plants. The Generation and Energy Management Division is implementing programs which have a positive impact on the environment: rationalization of the use of energy resources, development of renewables, increased efficiency of power plants and reduction of CO 2.

27 The new power plant of Torrevaldaliga Nord (Civitavecchia) In December 2003, Enel obtained the authorization for converting its Torrevaldaliga Nord power plant from oil- to coal-firing. The plant will have a capacity of about 2,000 MW. It is one of the most ambitious and advanced projects of the kind at the international level. The project features highly innovative technological applications, such as coal handling and storage in a closed-loop and vacuum system, which prevents the dispersion of particulates. Furthermore, with high-efficiency fabric filters, as well as last-generation desulfurizers and denitrification systems, the emissions into the atmosphere from the plant will be kept at about 60-70% of the levels indicated in the new national and EC regulations (maximum allowed stack concentrations: 100 mg/nm 3 for nitrogen and sulfur oxides and 15 mg/nm 3 for particulates). The solution chosen for boilers will result into a plant efficiency of 45% as against 35-38% of other coal-fired plants. CO 2 emissions will thus be extremely limited. The construction of the plant, to be completed in 2008, will require an investment of about 1.5 billion euro. New renewable-energy power plants In 2003, renewables had a further development, especially as a result of the entry into operation of new wind farms: > Campolieto, province of Campobasso (2.5 MW); > Sclafani Bagni, province of Palermo (8.5 MW); > Serra Cortina, municipality of Colobraro, province of Matera (2.5 MW); > Contrada Corvo, municipality of Caltavuturo, province of Palermo (30.6 MW); > Sa Turrina Manna, municipality of Tula, province of Sassari (23.8 MW). The total new installed capacity (68 MW) will generate about 24 GWh per year.

28 22 > 23 Business Activities ENVIRONMENTAL REPORT 2003 Thermal Generation Leri Ca Ge La Spezia Piombino Montalto di Castro Torre Nord Porto Tolle Porto Corsini Barbara afitta stardo Bari Brindisi For additional information, contact: Maurizio Urbani Enel / Generazione ed Energy Management Viale Regina Margherita, Roma Tel. no maurizio.urbani@enel.it Rossano Sulcis Termini Imerese Porto Empedocle Augusta Priolo Gargallo Business unit Generation from coal and orimulsion Generation from fuel oil and gas Generation from combined cycles and gas turbines Thermal power installations Net Power Generating maximum plants units capacity no. no. MW Net maximum capacity Total: 26,719 MW Steam (condensing) 57 14,178 Repowered with gas turbines 10 5,997 Combined-cycle gas turbines 13 4,711 Gas turbines 27 1,810 Diesel ,719 Steam 53.1% Repowered with gas turbines 22.4% Combined-cycle gas turbines 17.6% Gas turbines 6.8% Diesel 0.1% Net fossil-fired thermal generation Total: 106,670 million kwh Fuel consumption Total: 23,294,273 t of oil-equivalent Fuel oil 25.9% Orimulsion 3.8% Gas-oil 0.2% Natural gas 45.7% Coal 24.4% Fuel oil 27.7% Orimulsion 4.2% Gas-oil 0.4% Natural gas 40.3% Coal 27.4%

29 Expendables Total: 297,267 t Water for industrial uses Total requirements: 43,372,381 m 3 Total abstraction from inland waters: 22,340,346 m 3 Limestone for flue gas desulfurization 85.7% Caustic soda, sulfuric & hydrochloric acids 3.2% Resins, hydrazine, carbohydrazide, lime, sodium hypochlorite & chlorine dioxide 3.6% Ammonia 6.7% Other 0.8% From rivers 22.3% From wells 16.5% From aqueducts 12.7% From the sea (as-is) 21.3% From the sea (desalinated) 19.8% From waste waters (used inside plants) 7.4% Emissions into the atmosphere Waste waters 100,655 62,230 Discharged into water bodies (m 3 ) 12,576,493 Used inside plants (m 3 ) 3,200,279 Waste waters include those meteoric waters that are susceptible to pollution and are therefore fed to treatment systems before being discharged or used. 3,487 SO 2 (t) NO X (t) Particulates (t) CO 2 (t) 71,457,170 > from combustion 71,345,045 > from desulfurization 112,125 SF 6 (kg) 637 (t of CO 2 -equivalent) 15,212 Total (t of CO 2 -equivalent) 71,472,382 Special Waste Total production: 1,699,641 t Total delivery to recovery operators: 1,586,406 t Non-hazardous Total production: 1,677,869 t Total delivery to recovery operators: 1,584,923 t Hazardous Total production: 21,771 t Total delivery to recovery operators: 1,483 t 442, , ,531 88, ,079,741 1,065,737 11,479 10,292 Coal ash Gypsum from desulfurization Other Fuel-oil flyash Other Production Delivery to recovery operators Production Delivery to recovery operators

30 24 > 25 Business Activities ENVIRONMENTAL REPORT 2003 Renewables Domodossola Sondr Bergamo Torino Cune (Pisa) Bolzano Vittorio Veneto a Ceprano ltre ologna Ascoli Montorio al Vomano For additional information, contact: Maurizio Urbani Enel / Generazione ed Energy Management Viale Regina Margherita, Roma Tel. no maurizio.urbani@enel.it Sardegna (Cagliari) Sicilia (C Business unit Generation from large hydro plants Generation from alternative sources Geothermal generation Power installations HYDRO Net Power Head maximum plants installations capacity no. no. MW GEOTHERMAL Net Power Generating maximum plants units capacity no. no. MW Run-of-river 317 1,639.0 Pondage/reservoir 192 5,180.5 Pure/mixed pumped storage 20 7, ,330.1 Condensing Atmospheric exhaust WIND Power plants no. Net maximum capacity MW PHOTOVOLTAIC Power plants no. Net maximum capacity MW Net maximum capacity Total: 15,127 MW Net electricity generation Total: 31,124 million kwh Hydro 94.74% Geothermal 4.40% Wind 0.84% Photovoltaic 0.02% Hydro from natural flows 60.01% (18,679 GWh) Hydro from pumped storage 23.56% (7,333 GWh) Geothermal 16.18% (5,036 GWh) Wind 0.24% (75 GWh) Photovoltaic 0.01% (2 GWh)

31 Yearly equivalent hours of utilization* Geothermal fluid 7,900 Total fluid extracted (t) 41,591,440 Net of reinjected fluids (t) 28,627,040 Steam for electricity generation (t) 41,372,120 3,600 2,000 1,300 Fluid for non-electric uses (t) 819,620 > used directly 219,320 > used after expansion in atmospheric-exhaust turbine 600,300 Geothermal Hydro Wind Photovoltaic * On a statistical basis: yearly energy capability/capacity ratio Non-electric uses are uses of resources that do not have or have lost the thermodynamic properties making them suitable for geothermal generation. These uses fall under two main categories: supply of heat (especially for greenhousing and district heating) and extraction of substances (e.g.: carbon dioxide for foodstuffs). Expendables (geothermal activities) Total: 8,869 t Water for industrial uses (geothermal activities) Abstraction from inland waters, entirely from rivers (m 3 ) 1,100 Gas-oil (geothermal activities) Hydrochloric acid 3.4% Bentonite 20,9% Geothermal cement 30.3% Caustic soda 41.6% Other 3.8% Total consumption (toe) 1,800 Used for driving the drilling equipment. Special waste Total production: 50,663 t Total delivery to recovery operators: 7,926 t 48,186 Emissions into the atmosphere H 2 S- geothermal generation (t) 24,388 CO 2 - geothermal drilling (t) 5,527 SF 6 - all types of generation (kg) 793 (t of CO 2 -equivalent) 18,955 2,477 Non-hazardous special 7, Hazardous special Carbon dioxide is produced by the combustion of gas-oil, which is used for driving the drilling equipment. Production Delivery to recovery operators

32 26 > 27 Business Activities ENVIRONMENTAL REPORT 2003 Avoided CO 2 emissions (t) Hydro generation from natural flows (t) 12,513,000 Geothermal generation (t) 3,373,000 Wind generation (t) 50,000 Photovoltaic generation (t) 1,000 Total (t) 15,937,000 Avoided CO 2 emissions from the otherwise necessary conventional thermal generation. Other data HYDRO GENERATION Desilted reservoirs quantity (no.) 23 alluvial sediments removed and reused locally (t) 141,300 Fish ladders (no.) 30 Fish restocking campaigns quantity (no.) 133 restocked fish individuals 3,081,000 in addition to kg 6,600 GEOTHERMAL ACTIVITIES Drilled wells new (no.) 2 deepened (no.) 1 rehabilitated (no.) 3 Meters drilled (m) 11,856 In-service wells for steam production (no.) 221 for reinjection (no.) 28 WIND & PHOTOVOLTAIC GENERATION Wind systems Photovoltaic systems surface area occupied by machines, buildings and roads (ha) 100 total surface area affected by the installations (ha) 30 to 100 times larger surface area occupied by modules (ha) 6.7 total surface area affected by the installations (ha) 10.0

33 Networks, Infrastructure and Sales In Enel s new organizational model, the assets and know-how of the electricity and gas grids were placed under the responsibility of two Divisions the Sales Division and the Networks and Infrastructure Division and the coordination of commercial activities was strengthened. In particular, the Sales Division has the mission of developing an integrated offering of electricity and gas products and services, to be provided via focused distribution channels. The Division sells electricity and gas in the eligible and captive market, provides public and artistic lighting and is generally active in demand-side management. The Networks and Infrastructure Division, instead, has the task of managing electricity and gas grids. Deval SpA, of which Enel SpA has a 51% stake, distributes electricity in the region of Valle d Aosta. Adoption of the Environmental Management System In 2003, the Networks and Infrastructure Division, Power Grid Business Unit fine-tuned its Environmental Management System organization and procedures to conform to the international ISO standard. The Environmental Management System documentation (Handbook, Procedures and Instructions) was finalized and the tender for certification of the System expected by the end of 2004 was awarded to the selected certifying body. Always in 2003, the development of a corporate intra-network software system (called Environment and Safety ) was completed. The system is intended to collect process data (waste, PCBs, SF 6, etc.) and process them, as well as to internally circulate the documentation of the Safety Management System and of the Environmental Management System. A section of the system, called Legislative Observatory, enables users to identify the applicable legislation and regulations and improve their understanding of specific topics by accessing appropriate summaries.

34 28 > 29 Business Activities ENVIRONMENTAL REPORT 2003 End-use energy efficiency On October 8, 2003, the Authority for Electricity and Gas issued Decision no. 103: Guidelines for preparation, implementation and evaluation of the projects referred to in art. 5, para. 1, of the Ministerial Decrees of April 24, 2001, and for the definition of criteria, terms and conditions for the issuing of energy efficiency certificates. The Decision gave impetus to a host of activities in the area of end-use energy efficiency (micro-plants, combined heat & power, photovoltaic and solar thermal plants) and of promotional initiatives (through Enel s Captive Customers Commercial Business Unit). Moreover, in the course of 2003, Enel launched a research project for quantifying energy savings from innovative concepts and planned related promotion and awareness actions. Electric and magnetic fields: survey of power lines The recently-approved implementing decrees of frame-law 36/2001 on electric and magnetic fields specified limits of exposure, attention thresholds and quality targets for power lines and mobile-telephony, radio and television stations. Enel started a survey of power lines to identify critical conditions, if any, in terms of attention thresholds.

35 Power grid LOMBARDIA TRIVENETO PIEMONTE E LIGURIA T TOSCANA E UMBRIA F LAZIO, ABRUZZO E MOLISE CAMPANIA EMILIA ROMAGNA E MARCHE PUGLIA E BASILICATA Bari For additional information, contact: Anna Brogi Enel / Infrastrutture e Reti Via Ombrone, Roma Tel. no anna.brogi@enel.it Cagliari SARDEGNA CALABRIA Palermo Catanzaro SICILIA Regional unit and headquarters location Power installations SUBSTATIONS no. Installed transforming capacity MVA HV/MV 1,983 87,532 Satellite substations and MV units MV/LV 345,388 65,688 MV/MV 62,453 1, , ,237 LINES (km) Overhead Underbare Overhead ground conductors cables cables Total General data Regional units (no.) 11 Operation centers (no.) 29 Zones (no.) 129 Municipalities served (no.) 7,942 Customers connected to the divisional grid (no.) 29,484,870 > supplied by the Division 29,413,669 > only using its wheeling service 41,201 The Power Grid Business Area also operates 199 isolated photovoltaic systems. With a net maximum capacity of 589 kw and a yearly energy capability of about 648,000 kwh, they offer a cost-effective and environmentally sustainable solution for supplying power to mountain huts, nature sanctuaries and small isolated consumers. HV (>40 kv) 18, ,279 MV (1-30 kv) 205,740 7, , ,194 LV (380 V) 127, , , , , , ,422 1,078,208 Electricity Total electricity distributed (million kwh) 243,520 Special waste Total production: 47,340 t Total delivery to recovery operators: 45,133 t Emissions into the atmosphere SF 6 (kg) 2,010 (t of CO 2 -equivalent) 48,039 8,194 5,757 39,146 39,376 Non-hazardous special Hazardous special Production Delivery to recovery operators

36 30 > 31 Business Activities ENVIRONMENTAL REPORT 2003 Deval Aosta For additional information, contact: Andrea Motta Deval SpA Via Clavalité, Aosta Tel. no andrea.motta@enel.it Power installations SUBSTATIONS no. Installed transforming capacity MVA HV/MV Satellite substations and MV units 4 22 MV/LV 1, MV/MV , General data Municipalities served (no.) 68 Surface area served (km 2 ) 3,132 Customers connected to Deval s grid (no.) 118,239 > supplied by Deval 118,005 > only using its wheeling service 234 Deval also operates 2 isolated photovoltaic systems, which feed as many agricultural customers (in middle-mountain areas), each with a subscribed demand of 1.5 kw. LINES (km) Overhead Underbare Overhead ground conductors cables cables Total HV (>40 kv) MV (1-30 kv) ,352 LV (380 V) 10 1, , ,885 1,390 4,159 Electricity Total electricity distributed (million kwh) 905 Special waste Total production: 81 t Total delivery to recovery operators: 56 t Emissions into the atmosphere SF 6 (kg) 23 t of CO 2 -equivalent) Non-hazardous special Hazardous special Production Delivery to recovery operators

37 Gas grid NORD OVEST LOMBARDIA NORD TIRRENICA NORD EST LOMBARDIA SUD, EMILIA, TOSCANA ADRIATICA For additional information, contact: Gabriele Paris Enel / Infrastrutture e Reti Via Ripamonti, Milano Tel. no gabriele.paris@enel.it Regional unit and headquarters location Installations Natural gas STATIONS (no.) HP/MP 528 MP/LP with a power of > 1,200 kw 8,699 9,227 PIPELINES (km) Total natural gas distributed (million m 3 ) 3,493 Own consumption (million m 3 ) 5.8 Losses along the grid (million m 3 ) 12.2 Own consumption is the use of natural gas for its heating: before being distributed to customers, natural gas is heated in order to prevent it from freezing upon depressurization. The gas is heated through an intermediate water circuit. HP (p > 5 bar) 123 MP (0.04 bar < p 5 bar) 10,566 LP (p 0.04 bar) 16,505 27,194 General data Resource consumption Municipalities served (no.) 1,051 Surface area served (km 2 ) 30,066 Customers connected to the grid (no.) 1,795,919 Electricity (kwh) 3,130,000 Used for cathode protection of pipelines, for powering gas-heating circuit water pumps and for lighting of installations. Special waste Total production: 181 t Total delivery to recovery operators: 175 t Emissions into the atmosphere CH 4 (t) 6,307 (t of CO 2 -equivalent) 132,437 CO 2 (t) 11,095 The emissions of methane are the share of this gas which is present in the natural gas lost along the grid. The emissions of carbon dioxide are produced by the combustion of natural gas used for own consumption. 0 6 Non-hazardous special Hazardous special Production Delivery to recovery operators

38 32 > 33 Business Activities ENVIRONMENTAL REPORT 2003 International In 2003, Enel created its International Division with the mission of conducting international operations in the areas of electricity generation, as well as electricity and gas distribution and sales. The Division is also in charge of business development, i.e. of the search for alliances and acquisitions abroad in line with Enel s strategies. Enel s international portfolio includes the following companies: >Viesgo Generación and Enel Unión Fenosa Renovables (EUFR), operating in Spain; > Maritza, in Bulgaria; > Enel North America (ENA), in North America; > Enel Latin America (ELA), in Central and South America; > Electra de Viesgo Distribución and Viesgo Energía, in Spain. Enel s investments in international operations respond to strictly industrial strategies and involve programs of modernization and environmental improvements for compliance with international emission standards. The 2003 Environmental Report provides, for the first time, the main data on the number, characteristics, operation and environmental impact of Enel s power plants abroad.

39 Generating mix Enel Unión Enel Enel Total International Viesgo Generación Fenosa Renovables Maritza North America Latin America Division Net Net Net Net Net Net maximum Power maximum Power maximum Power maximum Power maximum Power maximum Power capacity plants capacity plants capacity plants capacity plants capacity plants capacity plants (MW) (no.) (MW) (no.) (MW) (no.) (MW) (no.) (MW) (no.) (MW) (no.) Thermal 1, (1) (2) 2, Hydro , Wind Total 2, , (1) Combined heat & power (2) 1 biomass, 1 biogas Net electricity generation Million kwh Enel Unión Enel Enel Total International Viesgo Generación Fenosa Renovables Maritza North America Latin America Division Thermal from fossil fuels 4, , ,786 Coal 3,934 3,934 Brown coal 2,751 2,751 Fuel oil and natural gas ,101 Total from renewables 1, , ,007 Thermal from biomass and biogas Hydro from natural flows 1, ,115 Wind Total 5,886 1,076 2,751 1, ,793 Net electricity generation by source Total: 11,793 million kwh Emissions into the atmosphere from thermal power plants Thousand tons Enel Unión Total International Viesgo Generación Fenosa Renovables Maritza Division SO 2 54 n.a. 172 n.a. NO X 11 n.a. 3 n.a. Particulates 4 n.a. 4 n.a. CO 2 4, ,322 8,347 By generating electricity from renewables, the International Operations Division avoided about 4.3 million tons of CO 2 emissions into the atmosphere from the otherwise necessary thermal generation. Thermal from fossil fuels 66.0% Total from renewables 34.0% For additional information, contact: Gaetano Salierno - Viale Regina Margherita, Rome - Tel. no gaetano.salierno@enel.it

40 34 > 35 Business Activities ENVIRONMENTAL REPORT 2003 Telecommunications The new Telecommunications Division is featured by Wind, the company providing fixed & mobile telephony, as well as Internet services in an integrated way. The take-over of Infostrada enabled Wind to operate fixed-telephony services more effectively. Wind provides Internet services through Libero, which has become Italy s top-ranking Internet portal in terms of pages visited and market penetration. Among the new Italian telecoms operators, Wind is the one with the largest fiber-optic transmission network. Constant commitment to the environment In 2003, Wind renewed its commitment to environmental protection, safety and social accountability. Wind plans to start a process which will lead it to become, during 2004, the first telecoms operator in the world with certified management systems in the above three areas. In addition to the already achieved ISO and OHSAS certifications, Wind initiated the process of ethical certification under the international SA 8000 standard. With regard to environmental protection, Wind developed a network for monitoring the electromagnetic fields emitted by its installations. Through this network, Wind can constantly control the contribution of its aerials to population exposure to electric and magnetic fields. Finally, Wind is preparing Memoranda of Understanding with Regional Environmental Agencies in the main Italian regions in order to provide them access to the technical documentation of its installations, thus giving evidence of its well-established policy of transparency. In 2003, Wind: > developed a system for monitoring and thus minimizing the energy consumption of its installations; > started a plan of replacement of all of its liquid-acid batteries with gel batteries, thereby eliminating the risk of leakage and soil contamination; to date, about 90% of its inservice batteries have been replaced; >prepared a project for computerized central management of incoming and outgoing waste records, in order to keep track of waste production and optimize waste reuse, recycling and recovery; the contractors managing and handling stocks and disused installations for Wind are involved in the project.

41 Milano Sesto S. Giovanni NORD OVEST M Iv Torino G ezia Marghera NORD EST ologna For additional information, contact: Guido Morisco Via G. Casalinuovo, Roma Tel. no Guido.Morisco@mail.wind.it CENTRO Rom Pozzuoli Bari SUD Palermo Registered office Field office Regional office Other office Installations Fiber-optic networks (km) 18,200 Local loops (km) 2,000 Fixed telephony switches (no.) 63 Mobile telephony switches (no.) 50 Radio base stations (telephony aerials - no.) 8,076 Points of Presence - POPs (no.) 206 Usage Voice fixed telephony (billion minutes) 15.0 Voice mobile telephony (billion minutes) 9.5 Internet (billion minutes) 24.7 General data Fixed telephony active customers (millions) 3.1 Mobile telephony customers (millions) 9.9 Registered Internet customers (millions) 15.2 Population coverage by mobile telephony network (%) 98 Resource consumption Electricity (kwh) 255,824,490 Used for powering telecommunications systems. Gas-oil (toe) 2,558 Used in generating sets which supply electricity in emergencies and to installations not connected to the power grid. Special waste Total production: 1,005 t Total delivery to recovery operators: 963 t Emissions into the atmosphere CO 2 (t) 7, The emissions of carbon dioxide are produced by the combustion of the gas-oil used in generating sets Non-hazardous special Hazardous special Production Delivery to recovery operators